3. A person deposits $18,000 in a fund that pays interest at the rate of 6% continuously. He withdraws 1200 dollars each year. i) Set up a differential equation where Y(t) represents the total amount in the fund after t years. Use the integrating factor method to solve the differential equation for the amount in the fund after t years. ii) What is the maximum withdrawal her can make every year so that the account is exhausted in 8 years? (Hint: Set up a new equation and solve)
3. A person deposits $18,000 in a fund that pays interest at the rate of 6% continuously. He withdraws 1200 dollars each year. i) Set up a differential equation where Y(t) represents the total amount in the fund after t years. Use the integrating factor method to solve the differential equation for the amount in the fund after t years. ii) What is the maximum withdrawal her can make every year so that the account is exhausted in 8 years? (Hint: Set up a new equation and solve)
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications
Section: Chapter Questions
Problem 23E
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